Well first thing to try is this my friend
Answer
Download the fix, run it, then restart.
Next select option 'do not scale' from within the 'change flat panel scaling' menu.
This should work however there is 1 little obstacle. If you don't have 1920x1080 as an option in your resolutions you will have to add it as a custom resolution. If you have to do this, if added without the correct paramaters it won't scale correctly. This is a problem with all driver series up to 174.xx, which seem to have fixed the problem and add the correct paramaters automaticlly for you custom resolutions.
My advice is try the fix first with your current driver, then if you have to set up a custom 1920x1080 res try it. If that fails upgrade driver to 174.12 which will make it easier to set up a custom resolution.
As for jumping to Ati, well they have better scaling options for there cards in that they seem to work.... period.
Nvidia haven't been able to fix this issue for 8800 series for several months now with people having to use this fix......
good luck, let us know how you get on